Title
Consider a memorandum/resolution authorizing Change Order No. 4 for the Gilmer Street Reconstruction Project with TTG Utilities, Inc. in the amount of -$403,083.06.
Body
DATE: July 7, 2026
TO: Kent Cagle, Interim City Manager
FROM: Andrew Zagars, P.E., City Engineer
SUBJECT: Authorize Change Order No. 4 for the Gilmer Street Reconstruction Project with TTG Utilities, Inc. in the amount of -$403,083.06.
BACKGROUND AND FINDINGS:
The fiscal year (FY22) 2022 Capital Improvement Plan includes the Gilmer Street Reconstruction Project, as a funded project for design and construction. On November 9, 2021, the City Council approved a preliminary design contract with KSA Engineers, in the amount of $658,710.00.
On November 7, 2023, City Council awarded a construction contract in the amount of $4,004,004.00 to TTG Utilities Inc. for the construction of the Gilmer Street Reconstruction Project (CCMR 23-181).
Three Change orders occurred during the time of construction for this project.
Change Order #1 in the amount of $48,716.80, was for unforeseen water and sewer services that were found to conflict with the new roadway excavation.
Change order #2 which was approved by council on January 7, 2025, addressed the replacement of an unknown 4-inch water main that portions of sanitary sewer main that needed to be replaced and were in conflict with the roadway construction. This change order was in the amount of $905,195.23 and use available funds from the Water and Sewer Capital Improvement Fund.
Change Order #3 was a no cost change order to add weather and delay days to the contract.
This final change order No. 4, finalizes the total amount of the construction contract based on actual measurements in the field of the item quantities. This change order reflects a deduction in the total amount of the contract in the amount of -$403,083.06. This change order is broken down to funds in the Certificate of Obligation 2022 Bond Fund in the amount of -$341,382.30, largely due to the reduction of soil lime treatment. The Water and Sewer Capital Improvement fund is the remaining deduction in the amount of -$61,700.76.
The total decrease for Change Orders No. 4 is -$403,083.06 which when adding all change orders results in a 13.76% increase to the original contract.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORMITY TO CITY POLICY:
This item conforms to State and Local policies
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
The total amount of Change Order #4 is a net decrease in the contract in the amount of -$403,083.06.
Is this a one-time or recurring revenue/expenditure?
This is a one-time expenditure.
Is this revenue/expenditure budgeted?
Yes, the amount will be credited back to the Certificate of Obligation 2022 Bond Fund and the Water and Sewer Capital Improvement fund for use with other capital projects.
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
Yes, the amount will be credited back to the Certificate of Obligation 2022 Bond Fund and the Water and Sewer Capital Improvement fund for use with other capital projects. The Certificate of Obligation 2022 Bond Fund, Account 305-56201-900-400-922026 will be credited -$341,382.30, and the Water and Sewer CIP, account 350-56201-900-400-922021 will be credited -$61,700.76.
RECOMMENDATION:
Staff recommends that the City Council authorize the City Manager, or designee, to execute Change Order #4 with TTG Utilities Inc., for the Gilmer Street Reconstruction project in the amount of -$403,083.06.
DEPARTMENTAL CLEARANCES:
Engineering
Finance
City Attorney
ATTACHED SUPPORTING DOCUMENTS:
Change Order
Proposal
Resolution
Presentation